Success: Music and Business in One Orchestration

Peter H. Gistelinck, executive director of The Chamber Orchestra of Philadelphia. (Courtesy of The Chamber Orchestra of Philadelphia)

PHILADELPHIA—Tough questions face American orchestra managers and arts administrators as audiences dwindle and revenues decline: Can orchestras persevere through long-standing economic challenges? Can you have your cake and eat it too, or must you choose between artistic excellence or prosperity? How do you balance the need to maintain a traditional core audience and yet cater to a new demographic? How to respond to the impact of social media? Can you provide a concert experience outside of the concert hall? 

Early in 2012, a book by a Stanford emeritus professor, Robert J. Flanagan, “The Perilous Life of Symphony Orchestras: Artistic Triumphs and Economic Challenges” was released, offering a detailed analysis of the greatly challenged American orchestras and their business models. 

The book was based on Flanagan’s research of America’s largest 50 orchestras for the last several decades. While some orchestras have resorted to Chapter 11 bankruptcy, some are achieving slow-but-sure growth despite the challenges. 

The Chamber Orchestra of Philadelphia is one of those in the latter group, having resolved an operating deficit and turned around the business. It has showed a positive balance sheet with cash flow for five consecutive years from 2007-2011. 

The Epoch Times interviewed its executive director Peter H. Gistelinck, who is responsible for these impressive business achievements. Gistelinck discussed his unique approach to the challenges faced by the American orchestra communities. 

Mr. Gistelinck manages the human, financial, and physical resources of the Chamber Orchestra of Philadelphia. The orchestra consists of 33 world-class musicians and 12 staff members, and has an operating budget of over $2 million. 

No Quick Fix

When asked how his music background fit the job of running the business of an orchestra, Gistelinck said “Musicians want to see the ‘musician’ in the ‘administrator,’ and you have to be able to give them that. If you can’t, you will not get the respect, and you can’t understand the business.” 

“I think everybody would be in agreement to have a medical doctor at the head of hospital. It’s the same with an orchestra. If you run an orchestra, you must have at least a background as a musician. Not having that background is a recipe for failure,” Gistelinck said. 

In discussing the economic challenges, as well his approach to them, Gistelinck said that nothing is built overnight—neither problems nor the solutions. Therefore one needs a holistic approach to solve problems instead of hoping to have a quick-fix overnight. 

Gistelinck said the sustainable growth that he achieved for The Chamber Orchestra of Philadelphia is based on consistency in what he does, including a clear mission and vision that speaks to the audiences: “That’s the main reason why we have a retention rate of 83.7 percent and why our halls are filled nearly 90 percent … of the time.” 

Artists thrive on creativity, but Gistelinck wants to make sure creativity is not only for the artists’ self-fulfillment but that it fulfills the audience’s love for music: “A lot of organizations and their artistic director’s programs do what they want to see or hear themselves, instead of their audiences.”

The Chamber Orchestra of Philadelphia, on the other hand, does the opposite. “It is extremely important that an arts organization gives back to the community and understands it audiences. When I used to work in Brussels and Paris, my programming was completely different. Why? Because the community was different! And as an arts administrator you have to be open to all genres within the discipline you manage; that way you can give the community what they are looking for,” he said. 

“You’ll see that also reflected in our 2012–2013 season.” 

Listening to the Audience 

Gistelinck is more concerned about the orchestra’s ability to give audiences what they want than he is about the economic downturn. But this is actually a sound business approach: He commissioned a 4-year market research study that showed the close correlation between the orchestra’s ability to listen to the audience, and the audience’s choice to listen to the orchestra. 

For Gistelinck, what is critical is whether the orchestra can truly understand the communities it serves and can provide a repertoire the audience will love. “This is the most important factor for our audience to come to hear us, followed by the choice of soloists and conductors,” he said. 

He also explained that “when you are able to show the relevance of your organization” to the community, then the organization is on the right track to find funding from foundations and corporations. 

The emphasis on the arts organization serving its community is especially important in the U.S. where arts’ funding comes largely from the community—from private individuals and corporations—as opposed to the government. 

Although government funding is important, it only represents 1.8 percent of The Chamber Orchestra of Philadelphia’s annual budget. “And that’s the combination of Federal, Commonwealth, and city support; that kind of funding may get even more challenging in the years to come,” he said.

One solution is to offer audiences more than just a concert: “Audiences these days are not going to a concert, they are going to a concert experience,” Gistelinck said.

By the term concert experience, Gistelinck means people spending quality time with their family and friends. This experience includes going to concert and enjoying the music, but also, perhaps, a nice pre- or post-concert meal. The whole package or process is the concert experience. 

To create pleasant experiences, Gistelinck has partnered with nearby restaurants, asking them to provide a pre- or post-concert menu for his audiences and then by promoting the restaurant in the orchestra’s program book.

Gistelinck is an orchestra manager who puts audience experience in everything that he does—in the selection of the repertoire, soloists, conductors, and themes. “All these elements are important to create a loyal audience, and that same audience will become your ambassador for your new audiences to come.”

To illustrate his point Gistelinck said that last year, subscriptions increased only 1.5 percent, but single-ticket sales grew 20 percent. 

Striking a Balance

The economic crisis has greatly troubled arts organizations. Some, as a result, have drastically changed their traditional programs—an over-reaction to the challenges, Gistelinck believes. 

The 4-year market research study showed a steady increase of the orchestra’s loyal audience—its core—regardless of the economic ups and downs.

Peter H. Gistelinck (R) with John Williams (L) and Dirk Brossé (C) at the Hollywood Bowl. Dirk Brossé, music director of The Chamber Orchestra of Philadelphia, was invited by composer John Williams to be the principal conductor for the Star Wars in Concert World Tour—an indication of the caliber of talent leading The Chamber Orchestra of Philadelphia. (Courtesy of The Chamber Orchestra of Philadelphia)

The survey results, indicating the core audience ranged in age from the late 30s to 60s and over, really hasn’t changed over time. People start going to orchestra when they reach their late 30s and become loyal audiences thereafter. 

This knowledge reduces the fear or perception that an orchestra is losing its audience and hence needs to take such actions as bringing concert experiences to elementary schools. 

“This could lead to losing your core audience members—something you definitely don’t want to happen,” Gistelinck said. 

He encourages a prudent approach to expanding the audience base without losing its core, “At the end of the day it comes down to find that well-thought balancing act.” 

When asked what he liked most about being an orchestra manager, Gistelinck said it is about how to tackle the challenge of helping the orchestra reach its potential: “When I take on a position, it is obviously extremely important that the quality is out there. If not, you cannot succeed in your job. I always compare it to a chef in a restaurant who definitely will need the right ingredients to prepare a terrific meal.” 

Speaking of what he would like the orchestra to achieve at its 50th anniversary, Gistelinck said he would like to expand growth of the audiences beyond the concert hall, “I see that as our biggest opportunity and challenge,” he said. 

He realizes that the orchestra audience is not limited to those just attending concerts in person: “Although we primarily program our concerts for the Greater Philadelphia community, I want our concerts to be available, one way or the other, for everybody, wherever they are.” 

He discussed his efforts to form alliances with companies like SpectiCast, for the theatrical releases of his concerts, and Naxos International, for providing online downloads of the concerts and performances at an affordable rate. 

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